Inheritance Tax Planning
The current allowance whereby no inheritance tax is charged is on the first £325,000 (per person) of someone’s estate – which is the value of their total assets they leave behind when they die.
There are a number of ways in which you can avoid a high inheritance tax:
- Making gifts
- Reducing estate while holding onto assets
- Setting up a Trust
At Vance Financial Management, we offer a wide range of tried and tested inheritance tax solutions.
What We Do
Our team of experienced independent financial advisors will help you structure your finances in the most beneficial way. We can help you with:
- Inheritance tax advice
- Life insurance policies
- Setting up discretionary trust
- Setting up bare trusts
The Rules Around Inheritance Tax
Your estate is liable for Inheritance Tax if it is valued over the current £325,000 threshold when you die. £325,000 is the nil rate, meaning you will pay no tax on your estate up to this amount.
In addition to the inheritance tax (IHT) standard nil rate band, a residence nil rate band (RNRB) was introduced in 6 April 2017. This is available when residential property is left to direct descendants. This is available when residential property is left to direct descendants. The maximum RNRB available is £175,000. Everything above this figure is taxed at 40%.
There are a number of ways you can lower your tax liability, such as making gifts to charity for example. There is also additional flexibility if your home passes to your children, grandchildren, or great grandchildren.
Life Insurance Policies
A life insurance policy that is written under an appropriate trust can be used to pay towards any inheritance tax liability, protecting your family from at least some of the tax bill. In usual circumstances the payout from a life insurance policy forms part of your legal estate and thus subject to inheritance tax.
In writing an insurance policy in an appropriate trust you will ensure that the policy is paid directly to the beneficiaries rather than your legal estate thus avoiding this being taken into account when inheritance tax is calculated.
There are two main types of trusts: a discretionary trust and a bare trust, each of which has different structures and purposes that can be explained to you in detail by our advisors so you can decide which fits your requirements best.
Kind Words from our Clients
I have always been impressed by his market knowledge , and desire to find solutions for retirement/investments that are best suited to our personal situation.
In addition,David helped to progress a critical illness claim after a fall at home 5 years ago ,resulting in premature retirement, when the company concerned was less than helpful initially.
His visits are always at a mutually suitable time and date , and David is a friendly and welcome visitor.
His investment suggestions and portfolio changes changes have proven to be good choices to date, and we look forward to David’s advice for years to come..
Dr A M
Dr M G
We feel that we can contact David and his office staff at anytime.
W. & M. R
When circumstances required prioritisation of attention and energy to other areas of our lives, it was reassuring to know he was continuing to monitor and review. He quickly responded to any questions we had and promptly dealt with matters which required attention.
The prospect of challenges ahead is less daunting, knowing that we have his continued support and interest in ensuring positive outcomes in our financial planning.
Dr B. B.
Miss A. M.
I would recommend him to anyone requiring impartial financial advice.
Mr W. O.
Mr J. S.
My association with David has become a working relationship where I am happy to share all my private and personal information, in return for the best financial advice available. His advice to date has proved to be sound and I am very pleased with the monies that my investments have accrued over this period.
Dealing with David also makes me relaxed, knowing that he understands my lifestyle, he provides me with individual attention by considering the fine details of my financial position, he considers my future requirements and he always emphasises the possible attached risks.
Honesty and integrity are important factors to me and Vance Financial Management are a company that I highly recommend.
Mr A. W.
Mr M. S.
© 2022 Vance Financial Management. All Rights Reserved.
VANCE Financial Management is a trading name of David Vance Consulting Ltd, a company registered in Scotland (SC346801).
David Vance Consulting Ltd is authorised and regulated by the Financial Conduct Authority (FCA FRN 806587).
The FCA does not regulate tax advice, trusts and wills.
Registered Office: Suite 324-325, Baltic Chambers, 50 Wellington Street, Glasgow, G2 6HJ.
Tel: 0141 202 0753 – Email: firstname.lastname@example.org – Web: www.vancefm.co.uk
The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK